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There are various duties required of you when you go Bankrupt (some of which are described here). If you do not complete them, the Licensed Insolvency Trustee may obtain its discharge from administering your Bankruptcy, thereby leaving you in Bankruptcy. This will essentially put you back into the same situation as you were prior to filing for Bankruptcy, wherein all of your unsecured creditors can once again pursue you directly for payment of the...
The federal government provides guidelines to all Licensed Insolvency Trustees to help them determine if an individual or family has ‘surplus’ income. Your threshold for surplus income is calculated based on the number of dependents in your household and your net family income. Net family income refers to how much you earn after deducting income taxes, payroll deductions, essential medical expenses, alimony, and child support. It does not typically...
There are two options for Canadians under our Bankruptcy law. For most individuals, Bankruptcy is a relatively streamlined process referred to as a Summary Administration. However, depending on the amount of assets an individual owns, an Ordinary Administration may be applicable.
These terms do not mean the same thing. Bankruptcy is a formal legal process whereby you assign your non-exempt assets to a Licensed Insolvency Trustee in order to be relieved of your unsecured debts. Insolvency is a term that means you are unable to pay your debts as they come due or your total assets are worth less than the amount of all of your debt. You must be insolvent in order to file for Bankruptcy but you are not automatically bankrupt just...
You may owe tax for the post-bankruptcy period, the part of the year after your date of bankruptcy up to December 31. If you owe tax for this period you are responsible for paying it.
Chapter 7 is a section of the United States Bankruptcy code (law) which is used by individuals to file for Bankruptcy in order to get a fresh financial start. This law does not apply in Canada.
Secured creditors (like vehicle finance companies) retain their rights under their contract, even after Bankruptcy or Proposal completion. If you fail to meet the contractual obligations, the creditor can repossess the collateral (i.e. car, ATV, Boat). In some provinces, the secured creditors can still collect from you for the deficiency, even after repossession. Ask your Trustee if this applies to you.
Chapter 11 is a section of the United States Bankruptcy code (law) which is used by businesses to obtain protection from creditors while it restructures its operations so that it can sustain itself in the future. This law is similar to the two Acts that apply to companies in Canada, the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act (CCAA) .
If you fail to pay your mortgage, your mortgage company can commence foreclosure proceedings, before, during or after Bankruptcy or a Proposal. If you are finished your Bankruptcy or Proposal and are concerned you are going to miss your mortgage payments you should contact your mortgage company immediately and try to negotiate with them.
